Transcription
So one of the biggest wealth transfers in our country's history is happening right now, and most people don't even realize it. Main Street businesses, like this one behind me, are the backbone of local economies. They make a lot of money and they're up for grabs. I think this presents a huge opportunity for people like you and me. In fact, it's actually how I got started. These guys bought one of my laundromats, and you guys have been watching me do all this.
Over the next 10 years, about 1 trillion in small businesses are going to change hands. That includes laundromats, vending routes, retail stores, farmland, manufacturing businesses, painting, and plumbing like some of the other businesses we own.
Now, why is this happening? The answer is really simple: it's one word—demographics. The average small business owner in the US is now 50 years old. Well older than that. These business owners are tired. They spent their lives building these companies, but now they're ready to retire and pass it on. Sure, like some of these businesses will get passed down to their children, but many of them don't have kids who are interested in actually taking it over.
In fact, we did a bunch of research that shows a growing number of young generations are not looking to step into their parents' shoes. They want a totally different path. So these businesses are going to be sold, and they are being sold all over the country.
But here's the thing: it's much better for everyday people like us to buy these businesses than for them to be swallowed up by large corporations or investment firms. You know, I've spoken to a ton of small business owners who've told me they've been approached by private equity firms offering a check. Private equity firms used to own 4% of them; now they own 20%. While selling to a big company isn't the owner's first choice, they're tired. They're dealing with financial pressure, and they're ready for a new chapter. So they sell, and those Main Street businesses go into the hands of Wall Street, which means changes that aren't great for the community. Then they own all of our businesses.
So if you've ever thought about owning a business, I think now is the time to act. I talk more about this in my book, but I wanted to give you a real example of how it's possible to buy a business, even if you've never done it before.
For instance, if you were to look right now at businesses for sale in your area by going to some of the business buying sites that have listings, you're going to see that there's a bunch of businesses. But you're also going to see that business owners aren't that savvy, and they might not even make it to online listings. Many are simply looking for somebody to step in and offer a solution—somebody they could trust. And that could be you, somebody local.
For instance, you could go to like BizScout. It's literally made to help you find the best off and on-market deals. Or BizBuySell—there's others. I've heard countless stories of people walking into their favorite coffee shop or hardware store, having a chat with the owner, and eventually striking up a deal to take over the business. I've done it myself. I could actually show you guys live some examples of it. Let me know in the comments if you want me to do that.
But these owners are just so much more willing to work directly with you than you might think. Some deals include long-term payment plans where, say, the buyer pays a monthly amount until the owner retires, passes away, or moves on. In some cases, the purchase might involve seller financing, like 60% of deals do, where the owner essentially becomes the bank, and you pay them back over time with future revenue and profits.
In other cases, maybe they're willing to lease you the business and allow you to pay them over time. You can also look at creative arrangements like SBA or third-party financing. Lots of people put a small amount of money down on a business, just like you would a house, and then finance the rest. The possibilities are kind of all over the place if you're open to thinking outside the box.
I think this weekend, take a walk through your neighborhood or a nearby town. Visit the local shops, speak with the owners, and ask about their plans. You'd be surprised by how many of these small business owners are open to the idea of selling. Many of them run the front counter, but they haven't even gotten to putting their business up for sale.
So if you've ever wanted to own a business and build something for yourself, I think now is the perfect time to start exploring these opportunities. Businesses are available everywhere—from the local barbershop to a dry cleaner around the corner. The problem is nobody's ready to buy them, and so I think it's way more possible than you think.
I'm going to share more of these stories and strategies, and it's all in my book, "Main Street Millionaire," which you can get here. But for now, get out there and start looking. The wealth transfer—it's happening today. With a little effort, it's not easy—you could be on your way to owning your own business sooner than you think.
And if you think this seems selfish—why would a small business owner sell to me? The other thing is, they don't have a backup plan. They don't have a retirement or pension fund. These small businesses are 90% of their net worth, so if they don't sell the business, where do they get their retirement money from?
For the first time ever, you're going to have Millennials and Gen Z matching up with Baby Boomers. The Baby Boomers need to exit and sell their business. Gen Z and Millennials are mad and annoyed at the fact that their wages haven't gone up. They're not making more money, there's lots of inflation, and they don't like their jobs.
So what if there could be an apprenticeship between the two, where they help you learn the business and take it over, and you buy it as you go? This is happening all over the country, and if we don't do it, then private equity does it, and that's a problem. Because the fastest way to become a millionaire is to be a small business owner.
Business owners account for 60% of all millionaires. The problem is that increasingly, we don't own businesses. Only 6% of Americans own a business. So if only 6% of us own a business, but 60% of all millionaires are business owners, we've got to fill the gap.
I think that small businesses and buying Main Street businesses is the way to do it. So this weekend, maybe get off the internet. You don't have to start a fancy AI startup. You don't have to try to do something clickbaity and speculate. Instead, go check out your local laundromat, dry cleaner, grocery store, or corner store. They might actually be looking for you.